If you think everyone you know has either been overseas recently or is about to go, you’d be correct. According to a report from Zip, more than 90% of Australians have booked a trip or have a holiday planned. If you’re like me, you’d be wondering how everyone is able to afford all these holidays. Lucky for you, we’ve got some tips on how to save up for a holiday and stick to your budget while travelling.
With the cost of living and interest rates constantly rising and ruining everything, it’s now more important than ever to budget your expenses. However, Zip’s report reveals that 4.4 million Aussies don’t budget for their planned holiday and will most likely return with ‘debt lag’ to balance post-trip.
To make sure that you can still travel and enjoy your holiday as the cost of living rises, we’ve gotten some great tips from Dr Gina Cleo, a habit scientist, about how you can afford a holiday and make sure you’re staying on top of your budget.
How to afford a holiday
As the average Aussie reckons they need just over $5,500 to afford the ‘ultimate no regrets’ holiday, here are five savvy saving tips from Dr Cleo.
Tip 1: Know where your money is going
We are all guilty of letting our spending habits get out of control and we end up splurging on things we don’t necessarily need. Even all those trips to the local cafe add up over time.
Dr Cleo recommends looking at your bank statement for the last 30 days and highlighting all the ‘non-essential’ spending you’ve done. This way, you can see where your money is going and things you can cut back on. Anything you don’t absolutely need has got to go.
It’s also a great way to see your spending habits and find other places where you can minimise your spending so you can afford that dream holiday of yours.
Tip 2: Automate your bills and savings
This is a fantastic tip that will help you afford a holiday even if you don’t have the willpower to save.
All you have to do is set up an automated transfer between your everyday account and your savings account every time you get paid. You can do the same with automatic payments for your regular bills.
Automated transfers, according to Dr Cleo, will mean you’re less tempted to spend your well-deserved holiday funds.
Tip 3: Be consistent
When you’re trying to save for a holiday, it’s important that you focus on consistency rather than intensity.
If you try to achieve a savings goal that’s bigger than what you can realistically achieve, you’re just setting yourself up for failure.
You shouldn’t feel guilty for wanting to buy some new clothes or having a meal out with friends from time to time.
For Dr Cleo, saving is all about striking a balance by putting away realistic amounts of money each week. While it’s good to save up so you can afford a holiday, doing it too intensely takes away from the joys of life. Start saving early, start small and focus on being consistent.
Tip 4: Check in with yourself
Obviously having to save is not as fun as being able to buy all the latest goodies you want but it’s important you shake yourself from a negative mindset.
Dr Cleo suggests that instead of focusing on what you’re giving up by saving, look at what you’re going to gain.
If coffee is costing you around $4.50 every day and you sacrifice that for a year, you’ll probably have enough saved to fly to Europe. If that’s too much to commit to, Dr Cleo suggests compromising and only buying a coffee on Mondays and Fridays while you make your own on other days.
How to stay on budget while travelling
Speaking of making room in your travel budget, Dr Cleo has got some great tips on how you can stay on top of your holiday spending.
Tip 1: Plan ahead
A well-planned itinerary will also help you create a well-planned budget, according to Dr Cleo.
If you know roughly how much your holiday will cost, it can help you create a more realistic budget and in turn, help you know how much you need to save so you can actually afford it.
Tip 2: Afford your holiday by snagging the deals
There’s no shame in looking out for a good travel deal, in fact, Dr Cleo encourages it.
Looking for the best travel deals and booking early can make your trip a lot more cost-effective and leaves you with more money to spend on holiday goodies.
Tip 3: Create a travel bank account
This is probably the best way to stay on top of your budget while you’re travelling.
Getting into the habit of using a separate bank account for your holiday will help you avoid dipping into your regular savings account while you’re away.
There you have it folks, the best tips to help you save for a holiday and stay on your budget while travelling.
Happy travelling!
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